Look how bad the sales have dropped, 29,000 this past week.

Considering it's like the 7th-8th year of that gen, you'd assume the 360/ps3 would be sold at a profit, or at least a profit with the sale of one game.

But I reckon microsoft tried to play all their cards on xbox one, and in the process abandoning 360.

Xbox One is not selling as much as they would have liked (They wanted to dominate Sony) and xbox 360 has hit hard, likely to get worse as EU slowly abandons it, maybe to current japanese sales levels.

MS have a ton of money, but they still need to make money in each department.

With the xbox one likely being sold at a loss, and recent price cuts meaning they are earning even less, and after the huge investments they made for next gen
(EA love - Dead rising 3/Ryse buyout - Titanfall - Insomniac and $100 million controller r&d) they are losing/not making as much as they'd like money which explains the price cuts & bundling in order to boost sales, very early on.
Add this on top of the fact x360 isn't doing so well for them now, they look like they could be in a nervous position with the xbox division.

The likelyhood of microsoft spinning off the xbox division increases I reckon. 

huh? first of all the x1 supposedly makes about 30 bucks of profit just on the hardware alone.

secondly, 30k a week for a console in its 9th year after its successor is out is actually pretty dang good.

microsoft certainly made mistakes introducing the x1, but long term I think it is set up pretty well. I don't think microsoft is that nervous at all...

9th year 9th

You only have one chance to proof something right, if you make a mistake like the 7/8th gen thing nobody will assume that you checked the rest of what you are talking about and assume you have made more mistakes... It was pretty easy to find out...

I don't really know what you are talking about. Have a look at the software sales for the 360. MS is making crazy money with it right now. The losses of a new console are already accounted for. Sure they could be printing money right now but they still gt their bang for the buck.

Microsoft themselves are abandoning it just like they did with the original xbox as soon as the 360 came out. Seems a shame as its still a very good console probably good for a few more years. Still competitive performance with wii u and ps3.

Why not release it with a simple top loading design, wired controller and usb 3.0 port so a fast usb stick or external hard drive can be used. I'm sure it would make a good budget console for developing countries and younger players. Seems a shame to let it die so soon with such a brilliant software library.

They could have dominated Sony if they released a much more powerful 500$ machine instead of a machine weaker than PS4 and with 100$ more price because of the fuckin' Kinect.

And the events occurred at XboxReveal don't help either.

My point is PS2 made money many years after PS3 was out, and PS3 will likely do the same with strong support especially in japan in 2014. Xbox 360 on the other hand doesnt seem as strong and will make them money, but not as much as they'd liked.

Nonsense. particularly with the recent price cuts and software freebies, they lose roughly $80 per console. The first batches of consoles are always loss leaders, until the (re-)supply chain is "running on autopilot" and generic cost saving measures have been implemented.

Also the X360 Fifa14 bundle is currently selling for around $220 here (includes taxes and store margin, and a $50 XBox store credit), so they are actually losing money on the X360 hardware, too. Might be a country specific thing, though.

difference is the ps3 came out in ps2's 6th year and the xbox one came out in the 360's 9th year.  Not to mention the fact that the 360 wasnt even as successful as the ps2 to begin with.  basically, that is a bad comparison.